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Nick leads innovation at Barclaycard who in 2017 processed some £250bn of payments. We go back to 1966 and the start of credit cards and continue the narrative through the present into the future.
Cards used to be perceived as bits of plastic that we all still recognise.
However as FS gets ever more digital and ever more virtual what “is” a card – especially when physical cards are likely to be less and less used over time?
What is a “card” when cards, at some point in the future are no longer produced?
What is a card now in fact? All these topics and many more are discussed including:
- the World Cup
- incumbents very much up to speed with digital FS now
- partnering and collaboration are the spirit of the age
- Nick’s 20yrs in payments
- “something like 2/3 of the VC money of the past couple of years has gone into payments”
- Barclaycard’s introduction of credit cards into the UK in 1966; how the team approached it and how long it took to getting it all working well for all concerned
- how a “card” works; its really “a way to pay” – your card is used with the merchant; behind the merchant sits the “acquirer” (bank); the acquirer moves the information to the “scheme” (Visa/Mastercard); they send that information on to the card issuer who then decides whether to authorise or not the transaction
- then the information flows back through the same chain – all super-rapidly of course and says “authorised” or “declined”
- fitbit payments
- interoperability; globally
- rules and protections from schemes
- manual machines in the 60s/70s with central mainframe processing of paper receipts from “zip-zap” machines; then replaced 80s by “epdq” machine connected through telephone lines; through to more recently chip and pin and then contactless technology
- Visa and Mastercard’s origins as an “association” model to connect all the banks together
- what a card is when you no longer use it but fitbits, phones etc
- online, in-app payments
- how a phone acts as a credit card, tokens, NFC chips and your “identity”
- card virtualisation – cf music
- invisible payments – eg Amazon first and now Uber – in both cases you do not “make” an explicit payment but a payment happens implicitly
- challenges with the Uber model -eg & esp when is the payment value agreed?
- notifications and the importance of visibility around invisible payments – er?! 🙂
- Barclaycard’s partnering with the Fintech Flux – receipts, proof of concepts et al
- what kinds of Fintech are attractive and which are not for an incumbent to partner with
- the importance of adding value not just to the consumer but also the merchants (generally forgotten but they are the ones who have to pay for and install new ideas)
- blending physical and virtual standards and approaches – “omnichannel”
- the relevance of click and collect
- why one has to wait for a physical card to arrive in the post if it can be all made virtual anyway?
- Barclaycard in the US powers the Uber credit card; you can do the whole application from within the Uber app and no need to wait for a physical card as it downloads the virtual card
- in the UK you can download a virtual card onto Android right away without waiting for the physical card to come
- identity – the sticking point/challenge
- biometrics can be oversold/overvalued
- Barclaycard’s partnership with BankID in Sweden as a virtual solution to identity – all apps on your phone use it to verify your ID
- a shoutout for interesting Fintech partners to collaborate with
And much much more 🙂
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